Carbon Neutrality and Global Partnerships: A Path to 2035

Japan's JFE Holdings is advancing its growth strategy based on two pillars: carbon neutrality and the circular economy. Founded in 2002, the group operates across the steel, engineering, and trading sectors, with steel alone generating 70% of sales revenue. Today, its mission is to transform one of the world's most carbon-intensive industries into a sustainable growth engine.

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The steel sector generates roughly 13% of Japan’s CO₂ emissions, making it pivotal to achieving the government's 2050 net-zero target. President and CEO Yoshihisa Kitano is clear about the group’s role: “This carbon neutral strategy by steel companies is important. Unless we achieve our targets, the government cannot achieve its targets either. Furthermore, if we don’t meet our targets, we also cannot contribute to realizing Japan's economic growth and enhancing its industrial competitiveness.”

The company’s research and development efforts focus on three “Es”: eco-process, eco-product, and eco-solution. Eco-process innovation is the toughest challenge because there are currently no industrial processes to produce steel without emitting greenhouse gases. Supported by government subsidies, JFE is investing in ultra-innovative technologies, including carbon-recycling blast furnaces, hydrogen steelmaking (direct reduction) and large, high-efficiency electric arc furnaces. This R&D may take a decade, but it is central to long-term competitiveness.

At the product level, JFE is promoting “eco-products” such as high-tensile strength steel to reduce vehicle weight, and electrical steel used in EV batteries and transformers. “We are helping our customers reduce energy consumption,” Kitano explained. “The technology is challenging, but our technical expertise is one of our competitive advantages.”